Transcript

Lori Rothman (Fox News): And hello everybody. Welcome. I’m Lori Rothman, sitting in tonight for David Asman. Stocks are tumbling today. Wall Street may be waking up to the idea that a deal to raise the debt ceiling (especially one with tax hikes) is exactly the last thing a huge majority of Americans want right now. The fact that Americans don’t want a deal is hanging over the White House talks like a giant elephant. A recent CBS News poll finds that just 24% of Americans support lifting the debt limit, but 69% say the debt ceiling should not be raised. Americans are aware of the consequences, too. Fully, 72% believe it is at least somewhat likely the economy will take a severe downturn if the debt ceiling is not raised. Americans clearly do not want more spending, no matter what. The President is not listening.

[Video clip: President Barack Obama: I’d rather be talking about stuff that everybody welcomes, like new programs, or the NFL season getting resolved. Unfortunately, this is what’s on our plate.]

Lori Rothman: Republican Congressman Ron Paul (R-TX) says, “Everybody does not welcome new programs.” He is running for President and he has his own solution to the debt problem. Welcome, Congressman.

Ron Paul: Thank you. Good to be with you.

Lori Rothman: Great to have you. You famously said that we should not raise the debt ceiling, and you have an idea to save 1.6 trillion with one swipe at the Fed’s balance sheet. Explain the idea.

Ron Paul: Right. We’re over the debt limit and they’re worrying about it. And I said, one solution — if we wanted to get serious and get down to business in the next year, do all the work we should do — we could get a reprieve, because we owe $1.6 trillion to the Federal Reserve. But where did they get the money to buy our debt? Well, they created it out of thin air. So taxpayers keep working hard to pay the interest to the Federal Reserve, as well as to finance these bonds if the Fed wants to take the monies. So I would say that is not a real debt. It’s a fictitious debt. It’s a dishonest debt, and that we’re not obligated. So if you don’t want pay interest for a while to the Fed, or just quit paying, then we can meet all our other obligations, and people shouldn’t be panicking that we’re going to default on our debt.

Lori Rothman: But it isn’t fictitious debt, Congressman, if you consider that that liquidity is in the financial markets. And so, if you wipe off the bonds and other assets off the Fed’s balance sheet, you still have all that money — right — that’s being hoarded by the banks, and at some point it’s going to be lended [sic: loaned] out. And then you have a big problem with inflation, don’t you?

Ron Paul: Well, this doesn’t change it. It stays the same. The Fed is not about to call that money back in. They’ve said, “Oh, when are we going to end QE2 and when are we going to downsize our balance sheet?” They’re not going to do that! The market—

Lori Rothman: But the Fed needs to have those to maintain those bonds, so that if it does call that liquidity out, in inflationary times, it can do that, to sell those bonds back into the financial marketplace.

Ron Paul: Well, all they have to do is raise Reserve requirements, and they would accomplish the same thing. So no, you don’t have to do that. But what I’m exposing is the fiction of the Federal Reserve on how they buy bonds, and what do they do with the interest, and why we owe them money, and why they contribute to the total debt of the country. And it’s not real debt in the sense that, if you owned a Treasury Bill, that’s a lot different. Or if we owe — if a Chinese owns a Treasure Bill, yes, if we default on that, that’s going to raise some eyebrows, but the Federal Reserve is quite different. I mean, this is debt that they were able to buy out of thin air. But they’ve already monetized that debt; that money is in the economy. Now, if you expect next month the Fed is also about ready to shrink the money supply, well, that would provide a problem. But that isn’t likely. That isn’t going to happen. They’re not in any mood to do that. And they’re going to continue buying debt, as they always have, so they can — they have plenty of room for manipulation, believe me! They manipulated trillions of dollars during the bailout and took care of their friends. They’re not handicapped. The only thing that’s handicapping the Fed now is people want transparency. Before, they did it in the dark of night and nobody knew what was going on. Now that we’ve exposed them, we have to see the Federal Reserve Board Chairman having press conferences, and—

Lori Rothman: I know that you are notable for — you’ve written a book about wanting to get rid of the Fed. Would you at the very least, though, be satisfied, Congressman, if the Fed just ditched its dual mandate – right — just got rid of the jobs mandate and just focused on price control? Because really the Fed, Bernanke was right when he said fuel prices, energy prices and food prices were transitory. We’ve gotten a bit of a lift off the gas price.

Ron Paul: Well, I think that’s a good suggestion, because they’ve had a dual mandate — one, stable prices and one for employment. We have no stable prices and no full employment. So I would take both mandates away from them and let them have a check-clearing outfit there, or something like that. But no.

Lori Rothman: So you must love this idea for an infrastructure bank. The jobs report — the June jobs report — was horrible. And now there’s a talk — they’re not calling it “stimulus,” but by any other name it would amount to that. What does this country need for job creation?

Ron Paul: Yeah. Well, what you need to do is change everything that we’ve been doing. We have too much spending and too much taxes, too much regulation, too weak of a currency, and we’re doing all the things wrong. But the most important thing that we’re doing wrong – and devastating thing – is we don’t allow the correction to occur. We don’t allow the liquidation of debt. We prop up all the mistakes. We buy the bad debt, where the banks that held this bad debt and these derivatives, they should have all gone bankrupt. Instead, the taxpayers got stuck with them. So we bailed out the financial institutions — the banks and the corporations and Wall Street — and they’re doing quite well. And yet, they said there would be a depression, of course, if we didn’t bail them out. We still had the depression! We still—

Lori Rothman: So do you think Americans don’t want a deal on the debt ceiling? Sorry to interrupt you.

Ron Paul: Let me still fin — let me—

Lori Rothman: Go on.

Ron Paul: Let me finish. We still ended up with the depression, because the People lost their jobs and lost their houses. Go ahead.

Lori Rothman: No, I just wanted to put to you — I mean, fine. Leave the debt ceiling; deal with the economic consequences; we hear you. So, I mean, do people just not want a deal in the end? I mean, how are we going to sort out and deal with the ramifications here?

Ron Paul: The ramifications of what is going on now and how we get back to full employment? Is that the kind of thing you’re talking about?

Lori Rothman: Absolutely.

Ron Paul: Yeah. Well, you have to do what I said. You have to change policies. We do have to cut, but we have to cut a lot! But we have to change the philosophy of government. We can’t maintain an empire. As long as we think we can do that, we’re on the way — I mean, we are literally and technically bankrupt; we can’t pay our bills, and we don’t have enough income. The only thing that keeps us going is counterfeiting our money. And the people — even today — people were buying dollars, because there’s nothing else out there other than gold. So yes, the dollar is still providing funds, but we’re counterfeiting the money. But we’re defaulting because the dollar’s going down in value when you look at your prices. The government — our government — defaults all the time. And we’re going to continue to default. But the way we’re going now, though, it’s going to be much much worse than — if we raise the debt limit, it’s going to be much worse than us biting the bullet and saying, “We need to change our attitude. We have to look at this. We have to change our way.”

It's a shame that Ron Paul needs more media exposure, but he's getting it in the wrong places, like FAUX News. They've tried to downplay him every chance they get, even though they let him on the (side) show in order to portray their "fair and balanced" bullshit.

I seem to remember that Faux Saudi News excluded Ron Paul from a debate in 2008. They have the credibility of a gold salesman and scandals for Murdoch. Good riddance!
That media coverage on an entertainment channel is worthless anyhow.

The reason Obama won is because he's a "good speaker." People were fed the bullshit and believed it because he's convincing. Ron Paul lacks the smooth speaking but what he says should win everyone over because he is NOT LYING. All we have to point out is that Obama went to school to lie and manipulate within the rules "Lawyer" and paul went to school to figure out the problem and fix it in the most appropriate way (Doctor) Who the hell would vote for Obama in Paulvs Obama? Only idiots.

I disagree. Obama won in 2008 because of George W. Bush and the six years that President enjoyed a Republican dominated Congress, yet still failed to deliver on every promise except tax cuts. Most of the Bush voters tax cuts were much smaller than the tax increases (other than directly on income) that Bush and RINO's fostered through their unfunded mandates to the States. Tax shifting, not tax reduction, for spending under Bush and the Republicans rose over 25% NOT INCLUDING the costs of the wars, which were funded primarily through seperate appropriations (dishonest).

So people rejected McCain as more of the same, and believed the liar from Chicago. Well, that's not going to happen again, at least, many people now realize Barack Obama IS the 3rd term of George W. Bush. Obama is Black-Bush!

This is why Republicans must nominate Ron Paul if they want to retire Barack Obama. No other Republican amoung the announced candidates has any credibility except Ron Paul. Obama will defeat those other guys, for the common response when disliking both choices is to go with the devil you know. This is proven every election, where the same old pieces of shit keep getting elected, over and over again.

Dudanation12 is not even close. I was a Republican voter until Dubya. And with that senile old fart Keating,er,McCain there really was no choice. Dumbya ruined any chance for the elitist Republicans. He was a dismal failure and nobody with political savvy wanted him around come campaign time.
Paul was my preference, but once the GOP tabbed McCain and that Tina Fey look-alike no way in hell I was voting Republican.
McCain made three critical mistakes.
1. He didn't run like hell when he had photo-ops with Dumbya.
2. He admitted that he knew nothing about the economy.
3. He let some idiot(probably a right-wing religious nut) select his running mate.
Obama was the only choice for any thinking Independent voter.

Even if the debt is rise, USA is gone DEFAULT because the US goverment is assuming that it is in bankrupcy, when they aprove the rise of the debt they are asssuming that the US governemt is bankruped.
The investors worldwide are loking at the US bonds, are looking at the value of the dollar and they are looking at a country that is in RECESSION, but worst if they approve the rise of the debt, its gone be DEFAULT.

We have to understand why there is a need to create new money.Everyone who works in the USA adds to productivity.You may find a faster more efficient way of doing your job for example.This adds to the wealth of the overall economy.You may get a pay rise for your efforts but the Govt takes most of this as tax.The US Federal Reserve creates this new money to equal your productivity and loans it to the US Govt as debt.The Govt has to tax you to pay for the debt created by your increases in your productivity. Hence in the West, the more growth we have, the more debt we incur.

China has many Govt banks which produce 80% of it's money debt free.This is why China even during hard times has a growth rate of 9%.Their domestic consumption is growing now and they will be less reliant on the West.

So our system penalises diligence,hardwork and innovation.The other issue is inflation.Our system must have inflation because the private central banking system constantly milks our economies of cash for them to function adaquately.Inflationary money is counterfeiting since it depreciates our spending and earning capacity.So we are on this constant treadmill of debt created by our increases in productivity and theft via infaltionary money to keep enough money in our economies for them to function.So we have an economic system in a state of perpetual economic collapse.Hence the boom and bust cycles.Small business cannot plan or function properly in such a climate.This is a system of economic destruction, whereby the Wall St Vultures backed by the Central Banks rule over a scene of carnage.

Yes but China depends on US over consumption of all their over produced products which depends on bubble economics to sustain. This all leads back to the ludicrous nature of CFR and all their stupid greedy arrogant treason of shipping US Jobs over seas for better profits; total ludicrous insanity that could only be made possible if the creators of CFR controlled US Monetary Policy, Private Banks, the media and much more and more as such.

Look at CFR’s foundation. Off the back of anti trust laws and their escape plan was the establishment of the Federal Reserve which gave them the power to issue US dollars without the consent of our Congressional Representatives through the very same private banks that they own and control. Perfect way to dis anti trust laws, yes, but this does not make them an Elite Master Race or more intelligent then the rest of US it just shows how much of dirty two faced, back stabbing scoundrels they are.

This debt ceiling debate is such an irritating thorn to the 50% of Intelligent Americans who stopped voting many decades ago. We need Ron Paul now people or it will be all over for US. We will be assimilated and all resistors will be eliminated if we do not get someone like Ron Paul into Office! CFR’s Global Economy is not sustainable and they know it but you still need to know this. CFR’s plan is to cull Humanity so they can still enjoy their power and glory. What a pathetic shame this is!

CFR and all their arrogant two faces back stabbing something for nothing users are like a bad tooth inside the mouth of the US. We all know the only way to get rid of the pain is to yank out the bad tooth.

You think that this cannot happen but you know history, and know that terrible things have happened. But we are still deceived on why those things happened and the Elite are still making the same mistakes all over again. Why? Because they refuse to respect the US Constitution of the United States of America; that’s why!

Let Us join together and yank out the bad tooth! Eventually the bleeding will stop and the pain will go away. This we must try and do as a People. It is the only way my friends. God’s Angels will help US if we simply just work through our responsibilities within the Natural Laws of the Universe. Yes I found Ques Ut Deus, but in the most unlikely place. I look very much forward to showing where I found it.

Douglas we must continually make the connection between increases in the money supply and increases in productivity.Make it personal and people will understand.Too many do not make the association between the Feds' creation of money and individual productivity.People think that money is the source of power when in fact it is productivity.

Obama has the economy on the path to total chaos.He must stop the wasteful spending, bring the troops home and start rebuilding the USA.It starts with letting people keep their money by lowering taxes and getting rid of the FED.

This is a must see ; http://www.youtube.com/watch?v=7qIhDdST27g This doco was awarded The Biff International award for best documentary.L Frank Baum had deep economic meaning for us in' The Wizard of Oz' which only now has come to light.

Ross Johnson, you fundamentally don't understand money.
Money is a medium of exchange and a store of value.
If the money supply did not increase, and through technology productivity increases, you could earn THE SAME, but everything would become cheaper.

Your savings would INCREASE in value (even with 0% interest), and your wage would buy MORE goods (i.e. increase your standard of living).

It saddens me that you display this ignorance about money. You probably equate the green notes in your wallet with 'money', but fail to realise that those 'dollar bills' are neither dollars, nor bills. They are Federal Reserve Notes (read them carefully).
What is a FRN? It is a CLAIM on a debt. What is the debt? A US Treasury note.

A gold coin on the other hand, once you exchange it for some good, has no promise behind it, no claim and no debt. It stands as an asset by itself. This was how things went from barter (exchanging various different goods) to using a common medium of exchange. Various mediums were used, including stones, shells, wood etc, but gold has through thousands of years been the one that has been constantly chosen by people.

FRN's are used as mediums of exchange due to legal tender laws, which (as the note states) are 'tender for all debts public and private'. This is FIAT (by edict), there is NOTHING backing that note (except another note).

Even the bible talks about silver and gold coins, over 2,000 years ago, and the Chinese, Aztec, Mayans, Jews etc. were using gold 5,000 years ago.

Debasing a gold coin (adding cheaper metals) was punishable by death, but kings and emporer's would do this to fund wars. Ring a bell? The US government has debased your dollar so much so that 40 years ago a dollar could buy you 1/35th an ounce of gold, and today it can only buy you 1/1600th an oz of gold. You only understand this if I call it 'inflation' and you realise that a family could survive on 1 income 40 years ago, and could buy a car and house and pay it off, yet 40 years later, we are more efficient at building cars and houses and yet a 2 income family cannot afford it.

You need to read up on money. Ron Paul's gold commission's report, or 'the case for gold' is a good start, as is The Theory of Money and Credit by Ludwig von Mises.

Don't blame Obama and the Democrats, it's in the mess it is in because of 8 years of Reaganomics.

Under Ronald Reagan, the US went from being the world's largest creditor nation to the largest debtor nation in just a few years - and you have remained the largest debtor nation ever since. In 1981, Reagan's first year in office, the US was a net creditor to the tune of $140.9bn. By 1984, that had shrunk to just $3.3bn - and the next year, the US shifted from being a creditor nation to a debtor nation for the first time in almost 70 years. By 1987, the US was a net debtor by $378.3bn - the largest debtor nation in the world. The figure rose to $532.5bn by the end of 1988, when Reagan left office. (Thanks to Paul Rosenburg for the above info)

Bush Senior and that moron son of his continued it.

This is probably the best thing I have ever read with regard to opposing political ideologies;

Until conservatives once again hold Republicans to the same standard they hold Democrats, they will have no credibility and deserve no respect. They can start building some by admitting to themselves that Bush caused many of the problems they are protesting.

I like Ron Paul knows his stuff certainly, but to have the belief that he will lead you out of the shithole that your country is in is quite frankly laughable. Mind you if he gets in he might be the first Republican to actually do something positive for your country since Eisenhower. With regard to Sarah Palin if she decides to run and gets the nomination please do the world a favour and don't vote for her, if you do and she wins, you will seriously be a laughing stock, and you can kiss your arses goodbye if she gets into power.

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